Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 3, Problem 8P
To determine

Calculate the interest rate.

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Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash flows in this series will increase by 7% each period. There are a total of nine cash flows in this series. What is the future equivalent of this cash flow series at time = 20 if the interest rate is 10% per period?
Ireen wants to give her daughter Loaura a financial gift on the latter’s college graduation two years from now. Ireen came across a promotional high-yielding savings account which guaranteed that a deposit of P2,000 today becomes P5,000 during the same period. What is the interest rate in this case if it is compounded quarterly?
What is the ordinary simple interest earned on P 35, 000 for the period from April 3, 2020 to October 14, 2020, if the interest rate is 18%?
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